These are tough times for Australia's grape growers and wine makers.
"We've got too much wine, it's too expensive to produce, we can't compete locally, and prices and export markets are both declining," Fiona Lindquist, Managing Director of McLaren Vale winery SC Pannell, says.
"We need assistance at a federal government level. The most significant measure is a reduction in tax."
From glug to glut
Poor-quality varieties from inland Australia that continue to flood the market and a global trend of lower wine consumption are big problems for the industry.
"Our reputation overseas is not great; many markets are unaware of the high-quality wines Australia can produce," Ms Lindquist said.
In 2019, China was Australia's largest wine export market.
"Although China tariffs have been removed, there's a huge glut from that period and the market hasn't come back to the same extent," Ms Lindquist said.
"China has found other markets, and their consumer preferences have changed.
"This is putting pressure on our prices."
Where's the Aussie pride?
Becoming competitive in the domestic market is the biggest challenge for many Australian producers.
"Australia makes some excellent rosé, but it's 'cool' to drink the French and Italian imports, although there is a place in the market for those," Ms Lindquist says.
"I'm not suggesting we put tariffs on the imports, but more needs to be done to support local business.
We need to focus on helping the industry reclaim our domestic market and get rid of our glut.
"There's a lot of talk about supporting farmers and recognising the hardship they're going through but remember, grape growers and wine makers that grow their own grapes are farmers, too."
French Government has growers' backs
"Export grants aren't enough when we've got international competitors like France and the EU generally, whose governments provide billions of dollars in support of their wine industry," Ms Lindquist said.
"The French government subsidises its country's wine industry, because it's an integral part of their society, their community and their identity as a country.
"If wine makers have a bad season, the French Government compensates them, provides significant export grants and actively promotes their wines internationally.
"The wages and costs of production are already lower in other countries. When they're coming into the Australian market and popping their quite decent wine for $15 on the shelf, we can't produce, bottle and transport quality wine for that sort of money.
"The industry is calling for greater government assistance such as subsidies and grants for export, cellar-door tourism and promotion to drink Australian wine."
Tackle taxes
The wine industry has a 29% Wine Equalisation Tax (WET) on the last wholesale sale of wine, usually between the wholesaler and retailer.
"There's a GST of 10% further along the line, so that's 40% tax on wine by the time the consumer gets it," Ms Lindquist said.
"A $350,000 producer rebate cap for each financial year is of little benefit. That's basically on your first $1.2million of domestic wine sales, but $1.2million in wine sales is a very small business.
"Small businesses need to sell $2million to $3million of wine to cover costs and be viable, which means we get the tax rebate on a small portion of sales."
In February, the Government announced it would increase the WET producer rebate to $400,000 from July 1, 2026.
"It's too little, too late," Ms Lindquist said.
Hardship
The wine industry is hurting.
"We're seeing multi-generational wineries close their door, go on the market or potentially go bust," Ms Lindquist said.
"Many owners of small-to-medium wineries are not drawing a wage.
"There are mental health issues, as well. There's genuine hardship.
"SC Pannell is quite well renowned; we've won many awards, but we're feeling the pain, too."
Issues unique to the wine industry
"In the wine industry, you invest a lot of money and take a huge risk," Ms Lindquist says.
"We're starting to grow the grapes now that will be picked in a year.
"Then you make the wine. If it's a red wine, it stays in barrel for a year and then it stays in bottle for a year, so quite often, we're having to invest for three years down the track — white wines, not as long.
"Whereas if you're making, say, gin, you can make it today, bottle it tomorrow then put it on the shelf.
"But, if you're making gin, you're not a farmer. You're not dependent on crops, the weather and all the other stressors."
Tourist attraction
"The wine regions are a big tourism drawcard, offering exquisite cellar-door experiences," Ms Lindquist says.
"Wineries are big employers. There are just over 2000 wineries in Australia and 6000 grape growers.
"If those cogs break down and we can't sell locally because we haven't got enough support and it's costing too much to make our wine, a big part of the attraction to visit Australia, as well as employment in these regions, will be lost."
SC Pannell has four vineyards and makes its own wine.
"We work hard to do the right thing," Ms Lindquist said.
"We plant grape varieties that are suited to our climate and don't use as much water, and we create wine that complements the food we produce in this country. That supports the hospitality industry.
"We work hard at being innovative."
Crying out for relief
"We need to support the wine industry with tax cuts, subsidies and grants, and support the viable, good-quality grape growers and winemakers," Ms Lindquist said.
"The industry is crying out for relief."
Fiona Lindquist spoke to Ai Group Communications Manager Wendy Larter
- Ai Group election policy papers
- Opinion: At every step, there's another hurdle
- Opinion: Red tape is crippling SMEs
- Opinion: Reward small business for having a go
